If the Share Capital note shows an unexpected figure, you need to add a new share class, update the share value during the year, or include a Capital Redemption Reserve, the following guidance may help.
Adding an additional share class
If a client has issued or introduced an additional share class, add it as a separate share class rather than editing an existing class.
Go to the Share Capital section of the Compliance Database and create a new entry for the additional class.
Each share class should have its own:
- Share class name
- Number of shares
- Nominal or par value
- Other relevant share details
Do not amend an existing share class to represent a different class, as this can result in incorrect Share Capital disclosures.
Updating the share price or value during the year
If the share price or value changes during the financial year, update the Share Capital information for the current accounting year.
The prior-year comparative should retain the previous year's value.
For example, if the share value was €1.00 in the previous year and changes to €1.50 during the current year, the current-year figures should reflect the €1.50 value, while the prior-year comparative should continue to show €1.00.
Do not overwrite the prior-year Share Capital information with the new current-year value, as this will result in an incorrect comparative.
Share Capital note shows unexpected figures
If the Share Capital note shows unexpected or incorrect figures even though no changes have been made, check whether the dataset has been rolled forward or reopened.
A roll-forward or reopening may cause a manually overridden Share Capital figure to be replaced by the system-calculated value.
If this has happened:
- Review the Share Capital entry.
- Confirm the required figure.
- Re-enter the manual override.
- Review the Share Capital note to confirm that the correct figure is now displayed.
Capital Redemption Reserve
To show a Capital Redemption Reserve in Bright Accounts Production, first ensure that the relevant share redemption transaction has been posted correctly and that a Capital Redemption Reserve nominal code exists in the Chart of Accounts.
For example, a journal may be posted as:
| Account | Debit | Credit |
|---|---|---|
| Retained Earnings or other distributable reserves | ✓ | |
| Capital Redemption Reserve | ✓ |
The journal can be added through:
Client > Journals > Add Journal
Once the Capital Redemption Reserve nominal code has been correctly set up and has a balance, the reserve should appear in the equity section of the financial statements.
You can also review the Nominal Reporting Groups to confirm that the nominal code is included in the appropriate reporting group.
If additional disclosure is required, you can add a user-defined note to the financial statements.
Before finalising the accounts
Check that:
- Each share class is recorded separately.
- The correct nominal or par value is recorded for each class.
- Current-year changes are reflected in the current year only.
- Prior-year comparative figures have not been incorrectly overwritten.
- Any required manual Share Capital overrides are still present.
- Any Capital Redemption Reserve is posted to the correct nominal code.
- The Capital Redemption Reserve nominal is included in the appropriate Nominal Reporting Group.
- The Share Capital note agrees with the underlying share information.